Owning Property in Mexico:
Estrella
del Mar offers the foreign investor one of the most secure
forms of property ownership in all of Mexico. The following
information describes the process of Mexican Property
Ownership.
How
Foreigners can own Real Estate in Mexico
The Restricted Zone
The Mexican Constitution regulates the ownership of the
land and establishes that "...in a zone of 100 kilometers
along the border or 50 kilometers along the coast, a foreigner
cannot acquire the direct ownership of the land."
These areas are known as the "Restricted or Prohibited
Zones".
Fideicomiso
or Bank Trust:
Any foreigner or Mexican National can form a Fideicomiso
(the equivalent to an American beneficial trust) through
a Mexican bank in order to purchase real estate anywhere
in Mexico, including the Restricted Zone. To do so, the
buyer requests a Mexican bank of his/her choice to act
as a trustee on his/her behalf.
The bank obtains the permit from the Ministry of Foreign
Affairs to acquire the chosen property in trust. The Fideicomiso
can be established for a maximum term of 50 years and
can be automatically renewed for successive 50 year periods.
During these periods you have the right to transfer the
title to any other party, including a member of your family.
The bank then holds the property in trust on behalf of
the owner for the
exclusive use of the buyer/beneficiary who has all the
benefits of a direct owner, including the possibility
of leasing or transferring his/her rights to the property
to a third party or to a pre-appointed heir.
The trustee is responsible to the buyer beneficiary to
ensure precise fulfillment of the trust, according to
Mexican Law, assuming full technical, legal and administrative
supervision in order to protect the interests of the buyer/beneficiary.
Fideicomisos are not held by the trustee as an asset of
the bank.
For practical purposes, even in unrestricted zones many
foreigners prefer to hold their property under a Fideicomiso.
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Notario Publico or Notary Public
The Notario Publico is a government appointed lawyer who
processes and certifies all real estate transactions,
including the drawing and review of all real estate closing
documents, thus insuring their proper transfer.
Furthermore, all powers of attorney, the formation of
corporations, wills, official witnessing, etc. are handled
and duly registered through the office of the Notario
Publico, who is also responsible to the government for
the collection of all taxes involved.
In connection with real estate transactions, the Notario
Publico, upon request, receives the following official
documents, which, by law, are required for any transfer:
-
A
nonlien certificate from the Public Property Registry
based on a complete title search.
-
A
statement from the Treasury or Municipality regarding
property assessments, water bills, and other pertinent
taxes that might be due.
-
An
appraisal of the property for tax purposes.
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